Exploration, the Economic Strategies

Abstract

Exploration for a geothermal reservoir is capital intensive, and requires planning and significant capital. The objectives of exploration are to locate, analyze, and acquire the area that can produce economic and useful quantities of geothermal energy. Evaluation of the risks of finding adequate producible and useable energy with the available techniques and funds provides the foundation for the exploration plans. Exploration wells now cost about $200 per foot drilled. Development of a 50 MW field and plant requires more than 76 million dollars. A direct use development requires a minimum $1,000,000 if it involved a new industrial installation. A development must provide more that 25% rate of return of return on the investment to compete with low risk investments.